So, what gives you a bad credit score? Well, when it comes to credit scores, everyone has to start somewhere. Although there are lots of different factors that can lower your credit score, there are a few main causes that can lead to bad credit:
- Missed or late payments on your credit file
- Little or no credit history
- CCJs or defaults
While those are the big hitters, there are a few other factors that can have an impact:
- Not being registered on the electoral roll
- Having a high credit utilisation ratio
- A hard credit search being recorded on your credit file
- A declined credit application
- Having a high amount of debt
The good news is, anybody can improve their credit score over time. If you need a few tips on how you can give yours a boost, read our guide to improving your credit score.
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk
36.8% APR Representative (fixed)
Representative example: 36.8% APR Representative based on a loan of £12,500 repayable over 48 months at an interest rate of 36.8% pa (fixed). Monthly repayment of £500.83. Total amount repayable is £24,039.67.